The closure of Sanitas Brewing Co. marks a significant moment in the Boulder craft beer scene, as this brewery has been a cherished presence for many. In mid-November, Sanitas announced that it would cease operations by the end of the year, and by December 20, they had served their last pints, joining the growing list of breweries facing tough times in the craft beer industry.
The timeline for closures was swift, with the Lafayette taproom shutting its doors on December 18, followed by the Englewood location on December 19, and the flagship taproom in Boulder closing on December 20. This wave of closures isn’t limited to Sanitas; several other Colorado breweries are also winding down. Trinity Brewing Co. in Colorado Springs served its final beers on December 21, and Call to Arms Brewing Co. in Denver is expected to close on December 23.
According to Michael Memsic, the CEO and co-founder of Sanitas, "I think I’ve counted 10 to 15 breweries nationwide that are closing between December 20th and the 23rd," with more closures likely on the horizon. He perceives this trend as the craft beer sector transitioning into a more stable phase, albeit one that involves a stark reality for many breweries. "As brewers, we’ve been a part of an emerging industry, and now we’re in a mature industry," Memsic elaborated. "In a mature market, there will consistently be both winners and losers."
Over the past two decades, the craft beer industry has experienced remarkable growth, but Memsic cautions that this rapid expansion was unsustainable. "As an industry, we opened way too many breweries in a very short time frame," he remarked. This saturation has particularly affected the Denver metro area, known for its vibrant craft beer culture. Events like the Great American Beer Festival, organized by the Boulder-based Brewers Association, highlight the region’s prominence in the craft beer movement.
While Colorado beer enthusiasts have enjoyed years of fierce competition and innovation, the current contraction means that numerous local breweries struggle to survive. Memsic noted, "We have been hit the hardest on the back end of the industry’s contraction."
When asked about the factors behind these changes, Memsic humorously pointed a finger at Gen Z, though he acknowledged that shifting attitudes towards alcohol consumption are just one piece of a complex puzzle. "It’s like a stew of issues," he explained, emphasizing that many different elements contribute to the current challenges.
One significant factor is the rising cost of property, which has made it increasingly difficult for breweries to secure affordable spaces for production. Memsic added, "It’s a hard industry to make money in, and it became clear to us that we didn’t have the access to capital for another round of investment."
Throughout its 12 years in business, Sanitas showed remarkable agility in adapting to the evolving landscape of the craft beer market. Initially, Memsic and his co-founder, Chris Coyne, aimed to position Sanitas as a regional brewery similar to well-known names like Oskar Blues and Odell Brewing Co. However, around 2018, they realized that distribution wasn’t their strong suit; instead, the taproom experience became their primary focus. "That’s when we knew that our strength lay in creating welcoming community spaces," Memsic recalled.
Although the pandemic disrupted their expansion plans, Sanitas continued to grow by opening new taprooms in Englewood in 2023 and Lafayette in 2024. Each of these locations became beloved gathering spots, fostering community and even supporting the launch of new businesses like C. Burger in Englewood and Portal Thermaculture in Boulder.
However, Memsic pointed out that what constitutes a successful taproom has evolved over time. "People looking for that experience aren’t going to be satisfied with just heading to a warehouse for a couple of pints anymore," he observed. Today, a thriving taproom must offer a more comprehensive experience, often incorporating food and hospitality that go beyond mere beer service. "Many taprooms weren’t designed for that kind of offering."
Despite the hurdles currently facing the beer industry, Memsic remains optimistic about the enduring significance of pubs and social spaces. He believes that the age-old traditions of gathering, enjoying drinks, and sharing stories will always hold value in society. "There are health benefits to socializing and fostering community," he noted.
In the end, while Sanitas Brewing may be closing its doors, Memsic is hopeful for the future. "I’m optimistic that this space will evolve into something new," he said. Reflecting on his time with Sanitas, he concluded, "We created something that truly mattered to Boulder."
McKenzie Watson-Fore, a writer, artist, and critic from Boulder, serves as the executive editor of Sneaker Wave magazine and founded the Thunderdome Conference. In her free time, you might find her enjoying oolong tea on her back porch or strolling along Pearl Street. Discover more about her work at MWatsonFore.com.
